What Investments Have The Best Returns in India is supposed to be well documented, but no one does a good job in it?
Usually, only elders seem to look for a good idea for what investments have the best returns. Usually, it should be the other way around! The younger generation should be looking forward to what investments have the highest returns?
During this pandemic, high is a luxury to have in the world of investing in normal instruments.
So, I’ve got some great ways for you to make money investing.
See when you don’t evolve, you cannot make enough money! Fixed deposits are currently at 5.47%, ROI.
Since inflation is 6%, your net gain after tax is 4% in fixed deposits.
So you are losing 2% to inflation, by not making enough with fixed deposits.
Though I hate Fixed deposits, I’ll still give that as an option to give some return.
Without further ado, Let’s jump in to understand, what investments have the best returns in 2021.
What Investments Have The Best Returns during the pandemic?
Let me bring up a new topic called crypto investing.
Smart contracts are always releasing with every new currency in the world of crypto.
Since that, the Supreme court of India has approved investing in crypto currency, you are at a sweet spot now!
I’ll combine instruments of investment of crypto with normal Instruments available in India.
1) Staking (Crypto Investment)
Smart contracts are like IPOs in stock markets. As IPOs keep launching in the stock markets, smart contracts are in the crypto market.
Staking means you are sponsoring the smart contract to flourish.
Staking providers tracker like staking rewards gives a list of all the staking providers now. List here.
You may stake the minimum as required by the staking provider. You are required to hold the smart contract in the exchange as per the lock-up period.
If you compound the returns with reinvestment of returns, a meager investment of just ₹50000 can result in 50 Lacs in 5 years.
Compound Interest calculation:
However, there is a risk involved with the contract as well. Research the contract well and sign up for staking.
Staking rewards are the number one in the Investment That Gives Best Returns list.
2) Bitcoin Lending
See many countries in the world has not made it simple to buy bitcoins. So many people, around the world, are looking to buy bitcoin from lenders.
What is Bitcoin Lending?
A) It means people who want to use bitcoin to make purchases or use somewhere, want to buy bitcoin. When the exchanges in their country doesn’t allow bitcoin buying, they come to lending sites.
Xcoins.io is one such site that allows bitcoin lending.
An easy investment of $200 can in an year earn you around $100 with bitcoin lending.
An approx return of around 50% per annum, is a whopping amount of return!
I started bitcoin lending, with an investment of $200 after the Supreme Court’s decision to allow bitcoin in India.
From that time, it has grown by a whopping 55% within one year!
With a bit of understanding of bitcoin lending, you may get great returns in India.
3) Bitcoin Mining
Bitcoin mining is a term referred to as adding another block of data to the blockchain.
A highly sophisticated computer solves a highly complex maths expression. Each time a complex expression is tried to be solved, it’s called a hash.
Over the network, how many hashes are created is called hash rate.
In the blockchain, there is a maximum of 21 million bitcoins that can exist in the world.
Now 18.5 Million are already in existence.
So as a miner, you may present a computer to solve the complex Math equation and get a reward every time your computer hashes it.
Every block produced rewards 6.5 Bitcoins, which is equally distributed according to the hash rate of your ASIC to you as reward.
With computers called ASICs, big hash rates can be achieved with an investment of $10K initial investment.
With a good initial investment, you may earn a lot with Bitcoin Mining!
4) Company Deposits/Corporate Deposits
When the FD rates are currently around 5.4%, company FDs can produce a return starting from 8.5% to 15%.
You may refer to many corporate FDs and invest.
See, when it comes to corporate FDs, you are at a higher risk, as they are not bound by RBIs governance.
If the company is bankrupt, your returns are next to nil.
But, given good research, corporate deposits are better than FDs in rate of interest to beat FDs.
5) Mutual Funds
Mutual funds are equity investments with a specific portfolio, from big companies with a fund manager.
You trust a fund house and invest in one of their mutual funds. Fund house allocates the money to buy certain shares in your name.
As and when the markets increase in price, Mutual funds do too.
The average return on Mutual Funds on a 5 Year basis is around 12%.
Mutual funds, in case of no knowledge of Investing, are the Best for people looking for good returns in long run.
6) Fixed Deposits
Though it is an investment, you cannot beat inflation with the returns.
Every year 300 crores are invested in fixed deposits which hardly beats inflation.
When the ROI is 5.4%, with tax, your return is 3.92%, you lose another 2% to inflation.
At this juncture in 2021, the Rate of Interest on FDs is around 5.4%.
7) Direct Investing in stock Markets
When we look for what investments have the highest returns in India, direct investing in the stock market stands first.
However, it’s not a cup of tea of a normal person, without fundamental or technical analysis knowledge.
With good knowledge in investing, you can zero down on good stocks and earn a decent return on investment.
Self made billionaires in India like Rakesh Junjanwala, Ramesh Damani, Radhakishan S. Damani have ruled the world with their investments!
Even the richest person in the world, Warren Buffet made his fortune with investing.
So learn, technical analysis, invest with good strategies, to make a good portfolio of stocks are rule the world.
8) Real Estate Investing
It’s said that you don’t wait to invest in land, you invest first and wait later.
Real estate investment is a liability more than investment. So, I’ve added it at the end.
To pay the tax annually, fencing, rentee finding, and maintenance, real estate is more of a liability.
However, over a period of time, real estate makes a lot of money!
But, once you sell the property, you’ve to pay a huge tax. To save it, you may invest again in another real estate within 3 months.
So to realize the profits, you’ve to continuously reinvest in real estate.
So I feel real estate as an investment is not a good means of investment.
That’s the end of this leg of what investments have the best returns in India.
I’ve myself invested in other means like teak wood planting and investing in e-gold, those do not hold the test of time to make enough returns.
So invest in Bitcoin Staking or Bitcoin Mining for great return on investment in 2021.
Happy Investing, Happy Money Making!